hdfc std life

7/29/2019 Hdfc Std Life

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HDFC

Standard LifeInsurance


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HDFC

Standard

Life

"Experto Credite."(Trust one whohas proved it - Virgil, 2,000years ago.)

Why HDFCSL?


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HDFCs GEOGRAPHICALSPREAD

No. of Offices

1992 26

1997 32

1998 41

1999 492000 67

2001 87

2002 118

2003 142

2004 173

Regionaloffice

Branch office

Outreach Program to 90 locations

Deposit & loan products offered

to individuals in over 2400 towns and cities.

31 new offices opened in 2003-04


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LOAN APPROVALS AND DISBURSEMENTS

(FY04)

90.41

76.17

117.32

99.51

152.16

126.97

0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

FY 02 FY 03 FY 04

LOANS APPROVED LOANS DISBURSED

Rs.

inbillion

Total

GrowthFY 04

Approvals 30%

Disbursements 28%


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CORE BUSINESS - LENDING(As at March 31, 2004)

Others

INDIVIDUALS

Home Loans

Fixed rate loan Floating rate loan

Home Improvement Loans

Home Extension Loans

Short Term Bridging Loan

Loans to NRIs

CORPORATE

BODIES

1%

30%69%

Total loans outstanding as at Mar04 - Rs. 279.74 bn (excludes loanssecuritised)

Y-o-Y growth of 29%


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HOME LOANS - HDFCS STRENGTHS

Low average loan to value ratio

Debt averse nature of borrowers

PDCs obtained from most customers or

DAS arrangements with employers

Low instalment to income ratio

Steady level of prepayments

Growth in urban market / salaried class

Quality of underwriting


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LOAN QUALITY & PROVISION FOR CONTINGENCIES

0.91

1.30

0.92

1.38

0.89

1.19

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

FY02 FY03 FY04

NPLs AS A % OF PORTFOLIO

PROVISION FOR CONTINGENCIES AS A % OF PORTFOLIO

Percentage

Portfolio includes loans, preference shares, debentures &

corporate deposits for financing real estate projects

As at March 2004

(Rs. in billion)

NPLs 2.57

Provision forContingencies 3.43

Portfolio 288.60


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EMPLOYEE PRODUCTIVITY

2004 1995 1990

Number of employees 1230 771 727

Number of offices 173 28 24

Profit per employee (Rs. in mn) 6.9 1.9 0.3

Assets per employee (Rs. in mn) 261 69 19

Administrative expenses to

average total assets (%) 0.49 0.67 0.76

Cost income ratio (%) 13.3 22.3 30.9


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2004 ^ 2003 ^ 2002

^

Market price per share (Rs) 620 332 343

Market Capitalisation (USD Bn) 3.4 1.8 0.9

Earnings per share (Rs) 35 28 24

Adjusted Book value per share including

appreciation in value of listed investments (Rs) 244 181 168

Return on equity (%) 26.5 24.0 22.9

Dividend payout ratio (%) 44.1 43.9 52.5

^ All values are adjusted for the bonus shares allotted by the Corporation in the ratio

of 1:1 in Dec-02

RETURN TO INVESTORS


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INTEGRATED FINANCIAL SERVICES

SECURITISATION

Future Activities

DISTRIBUTION

HDFC CHUBBGENERAL INSURANCE

CO. LTD.


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HDFC BANK HDFC currently holds 24.18 % of equity in HDFC Bank

Stock also listed on NYSE in the form of American Depository Shares

Network of312 branches in 163 locations & over 910 ATMs

Customer base of over 3.72 million accounts

Key business areas

Wholesale banking Retail banking Treasury operations

Financials (as per Indian GAAP) for the year ended March 31, 2004

Total income: Rs 30.3 bn, increase of 20% over previous year

PAT: Rs 5.1 billion, increase of 31.4% over previous year

Return on Equity : 20.1% (annualised)

Market capitalisation : Rs 107 billion (US$ 2.48 billion)


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HDFC ASSET MANAGEMENT

Joint Participation Agreement with Standard Life Investments (SLI)

HDFC MF offers 20 schemes which include equity & debt oriented

schemes

HDFC network distributes mutual fund products & acts as investor

service centre

Earned a Profit Before Tax of Rs 444.2 million for FY04 as against Rs.

224.5 million for FY03

Paid a dividend of 40% for FY04 to equity shareholders and 10% to

preference shareholders

The assets under management (AUM) of HDFC MF stood at Rs.150.25 bn as on Mar 31, 2004 becoming the second largest private

sector mutual fund house in India

Valued in June 2003 at Rs 3.4 billion (17 times the capital of the

company) with AUM of Rs 85 bn


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INTELENET GLOBAL SERVICES LIMITED- A JV BETWEEN TCS AND HDFC

Offers Business Process Outsourcing (BPO) services to international customers

Contact Centre Management (CCM) ,Transaction Processing (TP), Financial &

Services, E-mail management & IT Help Desk

Intelenets clients reputed international companies

Financial clients : Household International, CNA Insurance, Standard Life Healthcar

J P Morgan Chase, Barclays Plc

Retail clients : Britannia Music Co. , NEXT Plc. & Somerfield Stores

Others :General Mills , United Utilities, RCI, NRES

Other large deals: AT&T Wireless, Trans Union

Revenue for FY04 Rs.1.17 bn ; Profit before deferred tax (FY 04) Rs 108 million

No. of Operational Employees 2373 ( 1686 Voice & 687 Non-Voice)

Total No. of Employees - 2959

Delivery Centres - Navi Mumbai 500 seats, Mumbai 2100 seats, Chennai 150 seats


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CREDIT INFORMATION BUREAU INDIA LIMITED (CIBIL)

In partnership with State Bank of India, Trans Union International Inc., Dun &

Bradstreet Information Services India Pvt. Limited. As per RBI guidelines, CIBIL maintains a database of suit filed accounts of

(i) Rs. 10 mn & above (ii) willful defaulters of Rs. 2.5 mn & above

The bureau deals with both positive and negative credit information which will be

sold

Credit information from the bureau will be sold in the form of credit reports

Potential users of these credit reports are:

Banks , NBFCs & financial institutions

Consumer & mortgage finance companies

Credit card companies & other service providers e.g. mobile phones companies

etc.

87 credit grantors that have accepted membership of CIBIL

60 banks, 8 NBFCs, 8 HFCs, 8 FIs, 2 SFCs & 1 credit card company

CIBIL launched the Operations for its Consumer credit information bureau (software

licensed by Trans Union) on April 05, 2004

The Commercial Credit Information Bureau (software licensed by Dun & Bradstreet)

is expected to be launched in the second half of FY 05


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HDFC CHUBB GENERAL INSURANCE COMPANY LTD. Tie up with CHUBB Corporation, USA, a leading property & casualty insurer with

$ 30 bn in assets

HDFC holds 74.8% of the equity of HCGICL

HCGICL offers Auto Insurance, Home Insurance, Group Accident Insurance,

Group Travel Insurance, Commercial Insurance which includes Fire and Marine

and Specialty Insurance Products like Directors & Officers Liability

Achieved Gross Written Premium of Rs. 1.17 bn with over 2,20,000 customers

Operating out of 26 locations across the country.

HDFC network is used to cross sell Home Insurance & Accident Insurance

HDFC and HDFC Bank database is being used to cross sell Accident Insurance

Chubb's expertise in settlement & loss control will help the JV set new

standards in the general insurance industry


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AWARDS & ACCOLADES CII-EXIM Bank Comendation Certificate for commitment to Total Quality

Management - 2000

Euromoney identified HDFC as one of Asias top 10 best managed companies in

the finance sector - 2001

Rated as the Best Non-Banking Financial Company in Asia by Institutional

Investor Research Group 2002

HDFC won the International Financing Review - AsiasIndia Capital Markets Deal

of the Year for 2002 Award for its FRN issue in the international market - 2002

HDFC was identified as the best managed financial institution in India in the Fox-

Pitt Keltons survey of Asias best managed banks and financial institutions -

2002

Among the Top 10Most Respected Companies in India Business World

Among the Top 10Most Admired Companies in India Business Barons - 2003

Indias Second Best Managed Company Finance Asia - 2003

National Award for Excellence in Corporate Governance by The Institute of

Company Secretaries of India


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AWARDS & ACCOLADES

United Nations Scroll of Honour - 1991

Indias best managed company by Asiamoney magazine - 1995 and

1996

Most competitive Indian company by Euromoney - 1997

One of the 5 best Indian Boards by Business Today -1997

Best presented accounts 1994-95 and 1996-97 (3rd place) - in the

SAARC region by the South Asian Federation of Accounts in the

financial sector category

Rated as one of the best companies in India for strategy &

management and investor relations by Asiamoney - 1998

Excellence in service industry by the Indian Institute of Marketing

Management & Top Management Club (Pune) -1998


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AWARDS & ACCOLADES

1999 IMC Ramakrishna Bajaj National Quality Award in the service category

CII-EXIM Bank Comendation Certificate for commitment to Total Quality

Management - 2000

Asiamoney declared HDFC as the second best managed company in India - 2001

Euromoney identified HDFC as one of Asias top 10 best managed companies in

the finance sector - 2001

Rated as the Best Non-Banking Financial Company in Asia by Institutional Investor

Research Group 2002

CRISIL assigned HDFC the highest governance & value creation rating

CRISIL GVC Level 1 2002

HDFC won the International Financing Review - AsiasIndia Capital Markets Deal

of the Year for 2002 Award for its FRN issue in the international market - 2002

HDFC was identified as the best managed financial institution in India in the Fox-

Pitt Keltons survey of Asias best managed banks and financial institutions -

2002


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AWARDS & ACCOLADES

Won the prestigious award for "The Best Presented Accounts" in

relation to the Accounts and the Annual Report for the year ended

March 31, 2002 instituted by 'The Institute of Chartered Accountants

of India' for 2001-02 (in the category of Banks, Financial Institutions

and Financial Companies ) for the 12th time. The Theme for this

Annual Report was "REFLECTIONS" on the 25 years of HDFC - Jan30, 2003.

CRISIL assigns Highest Rating for Governance and Value Creation

(GVC) to HDFC - Jan 17, 2003

HDFC amongst India's Most Respected Companies : Business Worldmagazine - Jan 17, 2003

HDFC is The Best Managed Indian FI : Fox Pitt - Jan 13, 2003


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AWARDS & ACCOLADES

JRD Tata Corp. Leadership Award by Tatachem Golden Jubilee Foundation and

All India Management Association - 1996. (for Mr. Deepak Parekh)

Businessman of the Year by Business India - 1996. (for Mr. Deepak Parekh)


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The Standard Life Insurance Assurance Company


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BACKGROUND

Founded in 1825

Mutual Life Insurance Company since1925

Largest mutual life insurance company in

Europe


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Standard Life - Founded 1825

Head Office - Edinburgh, Scotland (UK)Presence

United Kingdom: 31 branches

Canada 11 "

Ireland 7 "

Germany 1 "

Austria 1 sales office

Spain 31 branchesHong Kong 1 representative office

China 2 representative office


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Unrivaled Reputation For Quality

Year Award

1999 Company of the decade

1998 Company of the year

1997 Company of the year1996 Company of the year

1995 4 star service award

1994 Overall best company

1993 Overall best company1992 Overall best company

1991 3 star service award

1990 Best mortgage services


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Experience In The Indian Market

First market entry - 1847

Innovative products & processes

Last claim settled in 1997


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Standard Life Investments

Assets under management 86.5billion

Investment provider 5 star award forthe eighth successive year


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Standard Life Health Care

UKs leading private medical insurerssince 1988

Fourth in the private medical insurersmarket

Health insurance company of the

year 2003 25% growth in Jan Dec 2003


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Standard Life Bank

Launched on 1st January 1998

Mortgages under management of

8.7 billion

30000 new motgage completions


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1. History of The Joint

Venture The Partnership

Discussions commenced - January 1995

Joint venture agreement signed -October 1995

Joint venture agreement renewed -October 1998


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Life Insurance project team established - January2000 (Mumbai)

Company officially incorporated - 14th August 2000

First private sector Life Insurance company to be

granted a certificate of registration - 23 October 2000

Shareholding - HDFC 81.4 %Standard Life 18.6 %


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HDFC Standard Life

New business premium ofRs. 232.5 crore in2003-04 on annual premium income (API) basis.

Registered a year-on-year growth of76%

Corporate agency channel,including its

bancassurance business grew by 150% to Rs50 Cr.

The recently launched unit linked business

received good market response and contributed

27% of business generated since its launch.


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Vision Statement

The most successful and admired life

insurance company, which means that we

are the most trusted company, the easiest to

deal with, offer the best value for money,

and set the standards in the industry. In

short, The most obvious choice for all.


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Values that will be observed while we work

with HDFCSL:

Integrity

What is it?

Honest and Truthful in every action.

Transparency

Stick to principles irrespective of outcome.

Be just and fair to everyone.


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with HDFCSL:Integrity

Why?

Integrity is the bedrock on which the company and theexpectations of the customers and employees are built.

Integrity establishes the credibility of the person, defines thecharacter and empowers one to do justice to the job.

Enables building confidence and trust, achieving transparencyand laying a strong foundation for a binding relationship.

Guiding principle for all walks of life.


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with HDFCSL:

Innovation

What is it?

Building a store house of treasures through experiences.

Looking at every product and process through fresh eyeseveryday.


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with HDFCSL:Customer centric

Why?

Reinforce brand loyalty by complete transparency.

Customer is the source of revenue for the company.

Customer is the reason for our existence.

Ensure that customer chooses our company to do business

with.

Customers goodwill alone can bring more business andmore customers.

Will contribute to customer retention.


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with HDFCSL:People Care

What is it?

Genuinely understanding the people we work with.

Guiding their development through training and support

Helping them develop requisite skills to reach their true potential.

Know them on a personal front.

Create an environment of trust and openness.

Respect for the time of others.


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with HDFCSL:People Care

Why?People are the most valuable assets of the company.

Motivate individual to give his / her best.

Establish a valuable relationship with them to create a joyfulworking environment .

Job satisfaction


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with HDFCSL:

Team work One for all and all for one

What is it?

Whole team takes the ownership of the deliverables

Consult all involved , understand and arrive at a commonobjective

Co-operate and support across departmental boundaries

Identify strengths and weaknesses accordingly allocateresponsibility to achieve common objectives.


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Growth in demand - driven by improvedaffordability

Falling property prices

Lowest interest rates since inception

Rising income levels

Fiscal incentives on both interest andprincipal repayments

Increasing urbanisation

Increased network of outlets

HOUSING MARKET SCENARIO


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Improved Affordability

Property price estimates in suburbanMumbai Affordability equals property prices byannual income

22.0

15.6

11.1

8.3

6.65.9

5.3 5.1 4.7 4.3

0

5

10

15

20

25

30

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

PropertyValue(RsLac)

&Affordability

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

AnnualIncom

e(Rs)

Property Cost (Lac) Affordability Annual Income (Rs)


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LIABILITIES

(As at March 31, 2004)

1%10%

89%Capital

Reserves

Borrowings

Rupees - 2.47 bn

Rupees31.47 bn

Rupees286.84 bn

- Deposits- Domestic Borrowings

- International

Borrowings

Total Liabilities Rs 320.78 bn (PY Rs 262.96 bn)


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2% 7%

90%

1%

Loans (including pref. shares, debentures

corporate deposits for real estate projectsInvestments

Net Current Assets

Fixed Assets

ASSET PROFILE(As at March 31, 2004)

Total Assets as at March 31, 2004

Rs. 320.78 billion (US $ 7.17

billion)

Total Assets as at March 31, 2003

Rs. 262.96 billion (US $ 5.88 billion)


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BREAK-UP OFBORROWINGS

(As at March 31, 2004)

33%

11%

33%

23%

DEPOSITS (33%)

DOMESTIC TERM LOANS (33%)

BONDS, DEBENTURES &

COMMERCIAL PAPER (23%)

INTERNATIONAL BORROWINGS

Total Borrowings Rs 286.84 bn (PY Rs 232.52 bn)

hdfc std life

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